An economic district to help promote downtown Medford is gaining momentum, but the organization behind it has struggled to maintain a secure financial footing.

After a four-month, $26,000 study by Civitas showed at least 50% of property owners supported such a district, the Downtown Medford Association released proposed boundaries at a Medford City Council meeting last Thursday.

The district would encompass some 178 different properties in an area bounded by Sixth Street to the north, Eighth Street to the south, Oakdale Avenue to the west and Bear Creek to the east. Main Street would be the backbone of the proposed district.

“It has shown promising support,” said EJ McManus, president of the association.

While the association pushes ahead with a possible economic district, it had to reduce operational costs in April by ending a contract with its executive director and cutting other expenses to remain solvent.

Once it becomes better established, the association estimates it would have an annual budget of $90,000.

If the district is ultimately formed over the next 12 months, it would assess a rate of an estimated 10 cents per square foot on property owners.

To accomplish the legal steps needed to form the district and to implement it, the association asked the city for a three-year commitment of $375,000 to help bolster its budget.

Beaverton and Hillsboro, comparable in size to Medford, have downtown associations with an average budget of more than $250,000.

A previous attempt to form an economic district in downtown Medford during the last decade was unsuccessful.

The association has helped facilitate various efforts to liven up the downtown, including spring and summer hanging flower baskets, Bikes ‘n Brews sponsorship, holiday lights and Third Friday events.

The association recently secured a $200,000 grant for the Holly Theatre restoration.

Hundreds of volunteers and partners, including Councilor Jessica Ayres, help the association continue to promote the downtown.

Clay Bearnson, a downtown business owner, former councilor and member of the association, said the city has been the association’s main partner for many years.

“In past iterations of the DMA, I’ll admit it, when I was on the council, it seemed lofty at times,” Bearnson said.

Going forward, he said the association will continue to foster tourism and promote development in the downtown, he said.

Councilor Nick Card said he wondered why the boundaries of the proposed economic improvement district were relatively small, leaving out other large potential employers, including restaurants.

McManus said the proposed boundaries are a “proof of concept” to give the district time to prove itself before it potentially expands.

“We didn’t want to go from zero to 100 right away,” he said. “We want this to be successful. We’re not married to the current 178 properties.”

Marta Tarantsey, also with the association, pointed out that the size of the proposed district is comparable to, if not bigger than, other districts in the state.

She said the association has gone through name changes and other makeovers over the years.

“We’re hoping the third time is the charm,” she said.